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Individual Income Tax Rates
RESIDENTS
These rates apply to individuals who are Australian residents for tax purposes.
The above rates do not include the:
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Medicare levy of 2%
Income Thresholds for Medicare Levy Reduction
Individual Income Thresholds
The 2025/26 Medicare Levy low-income thresholds for individuals are as follows:
If your taxable income is equal to or below the lower threshold amount, you do not have to pay the Medicare levy. If your taxable income falls between the lower and upper threshold amounts, you pay only part of the Medicare levy. If you taxable income is at or above the upper threshold, you pay the full Medicare Levy of 2.0%. This then applies to the entire amount of taxable income.
Low-Income thresholds for families are calculated on a sliding scale based on the number of dependants.
Medicare Levy Surcharge (MLS)
Income Thresholds - 2025/26
Resident taxpayers may be liable for a Medicare levy surcharge (MLS) of 1%, 1.25% or 1.5% (i.e. in addition to the 2% Medicare Levy) for any period in an income year when they did not have an appropriate level of private patient hospital cover for themselves, their spouse and dependent children (subject to certain exceptions for 'prescribed persons'), if the exceed the relevant income threshold.
Superannuation Contributions Cap
Concessional contributions include:
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employer contributions (including contributions made under a salary sacrifice arrangement)
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personal contributions claimed as a tax deduction.
If you have more than one fund, all concessional contributions made to all of your funds are added together and counted towards the concessional contributions cap.
Concessional contributions general cap for the given income year.
Non-concessional Contributions Caps
Non-concessional contributions include personal contributions for which taxpayers do not claim a tax deduction.
Motor Vehicle Cents Per Kilometre Rates
Under the cents per kilometre method, a single rate is udsed for claiming car deductions - up to a maximum of 5,000 business kilometres per car (if applicable).